Making the Most of a Financial Advisor in Retirement
Retirement is when your money starts working for you instead of the other way around. A financial advisor can help you manage that shift—but only if you know how to work with them effectively.
Clarify what you want your advisor to do
Before you hire or re-engage an advisor, define your priorities. Common retirement goals include:
- Turning savings into reliable income
- Minimizing taxes on withdrawals
- Protecting a spouse or partner
- Planning for healthcare and long-term care
- Leaving a legacy to family or charity
Write down your must-haves, nice-to-haves, and hard boundaries (for example, “I never want to spend principal below X” or “I don’t want to manage individual stocks”). This becomes the basis of the engagement.
Understand how they’re paid and what they do
Ask direct questions about compensation and scope:
- Are you fee-only, commission-based, or fee-based?
- What is the total annual cost to work with you (advisory fee, fund expenses, trading costs)?
- Do you act as a fiduciary at all times?
- What services are included: investment management, retirement income planning, tax planning, estate coordination, insurance review?
You’re looking for clear, simple explanations and written documentation. If you don’t understand how they get paid, keep asking until you do.
Build a retirement income plan together
A good advisor will turn your nest egg into a structured income strategy, not just an investment mix. Expect to discuss:
- Your essential vs. discretionary spending
- Guaranteed income sources (Social Security, pensions, annuities)
- A withdrawal strategy (such as a percentage-of-portfolio approach or guardrail strategy)
- Which accounts to draw from first for tax efficiency (taxable, traditional IRA/401(k), Roth)
Ask to see year-by-year projections and “what if” scenarios—such as a market downturn early in retirement or higher-than-expected expenses.
Stay involved in investment decisions
You don’t need to pick funds, but you should understand the big picture:
- Overall asset allocation (stocks, bonds, cash, alternatives)
- How much risk you’re taking and why
- The role of specific tools, such as bond ladders, dividend-paying funds, or broad index funds
Ask your advisor to explain your portfolio in plain language and to show how it supports your income and risk tolerance.
Meet regularly and come prepared
Set a standing review, usually once or twice a year, and revisit when life changes. For each meeting:
- Bring updated spending numbers and account statements
- Flag upcoming decisions: home sale, big gift, healthcare change
- Ask for a simple one-page summary of key recommendations and action items
Use meetings to test understanding: “Explain to me how my income holds up if markets are poor over the next five years.”
Coordinate taxes, estate, and healthcare
Retirement planning isn’t just about investments. Work with your advisor to:
- Plan RMDs (required minimum distributions) and Roth conversions
- Align beneficiary designations with your will and estate documents
- Evaluate Medicare choices, long-term care coverage, and out-of-pocket risk
If you have an attorney or tax professional, ask your advisor to coordinate with them so your plan works as a whole.
When you treat your advisor as a long-term partner, set clear expectations, and stay engaged, you turn advice from something you buy into a framework that supports your entire retirement.